Holiday lets and short lets

Holiday let insurance in the UK

Reviewed by the Apex broking team · Last reviewed 2026-10-29

Holiday let insurance is a property and liability policy written for homes let to paying guests, because standard home insurance usually excludes or restricts letting. Without the right policy, a fire, a flood or an injured guest can leave you paying the bill yourself.

Part of: Holiday let insurance in the South West

In short

If you let a cottage, flat or house to paying guests, you usually need a policy that knows it is a holiday let: buildings and contents written for letting, public liability for guests and the public, and cover for lost bookings after insured damage. Home policies commonly exclude business use or need you to declare it. In England the fire safety law for paying guest accommodation applies even if you let for one night, and a national registration scheme is expected from March 2027. Scotland already licenses short-term lets and Wales requires registration by 31 March 2027.

Why home insurance usually stops when you start letting

A home insurance policy is priced for a household living in its own home. Letting to paying guests changes the risk: more people, people who do not know the property, more wear, longer empty periods between stays, and a business income that can be lost. Home policies commonly exclude business use, exclude or limit theft by people you have allowed in, or require you to tell the insurer before you let. Some say nothing until a claim arrives, then rely on a condition about change of use.

The effect can be serious. If the insurer was never told the property is let to guests, a claim can be reduced or declined, and the liability section may not respond to a guest at all. GOV.UK's guidance for owners in England says you should have dedicated holiday let insurance, public liability cover, and buildings and contents cover suitable for short-term letting. That matches what we see: the gap is usually not a missing policy, it is a policy written for the wrong use.

If you also let homes on long tenancies, those sit under landlord insurance rather than a holiday let policy, and some owners need both.

What a holiday let policy usually includes

Wordings differ, so treat this as a checklist rather than a promise of what any one policy says.

Section	What it usually covers	What to check
Buildings	Fire, flood, storm, escape of water and other insured damage to the structure	The rebuild sum, and any conditions about heating and checks between stays
Contents	Furniture, linen, kitchen equipment and fittings you provide	Whether accidental damage by guests is included, and theft by guests
Public liability	Claims by guests, visitors and neighbours for injury or damage to their property	The limit, who is insured (owner, company, manager) and activities such as hot tubs
Loss of bookings or income	Lost letting income after insured damage makes the property unusable	The period covered and how income is measured
Employers' liability	Injury to people you employ, such as cleaners or a changeover team	Whether your cleaners are employees or contractors
Optional extras	Legal expenses, cover for empty periods, garden equipment, outbuildings	What counts as unoccupied and for how long

Two points cause most disputes. First, the loss of income section commonly pays only when the cause is damage the policy covers, not a cancelled booking for some other reason. Second, unoccupancy conditions can restrict cover for escape of water or theft if the property stands empty for a set number of days, which matters out of season.

The legal duties that shape your cover

Insurers ask about compliance because breaches make claims more likely and harder to defend. The main duties in England are:

Fire safety. The Regulatory Reform (Fire Safety) Order 2005 applies to paying guest accommodation. Government guidance says the law applies even if it is just for one night where you charge someone to stay and the property is not occupied as a private dwelling. The responsible person, usually the owner or whoever controls the premises, must carry out a fire risk assessment and keep a record of it. See our note on fire safety risk assessments.
Guest safety. Under the Occupiers' Liability Act 1957 you owe visitors a duty to take reasonable care that they will be reasonably safe in using the premises. Our guide to guest injury liability for holiday lets covers this in detail.
Gas, electrical and alarms. GOV.UK directs holiday let owners to HSE gas safety guidance for landlords, electrical safety guidance and the smoke and carbon monoxide alarm rules.
Business rates or council tax. In England a self-catering property is assessed for business rates if it was available to let commercially for at least 140 nights in the last 12 months and actually let for at least 70. In Wales the figures are 252 and 182 nights.
Tax. The Furnished Holiday Let tax regime was abolished from April 2025, so holiday letting income is now taxed under the usual residential rules.

How claims arise: illustrative examples

These examples are illustrative. They show the kinds of situation that come up, not real claims or outcomes.

Escape of water between stays. A pipe bursts in a cottage left empty for three weeks in January. The kitchen ceiling comes down and the next six bookings are cancelled. Whether buildings and loss of income respond can turn on the unoccupancy and heating conditions.
A guest falls on the decking. A guest slips on wet decking at night and breaks an ankle. They claim against the owner for pain, lost earnings and care. Public liability usually responds, subject to the wording.
A party damages the contents. A group booking causes damage to furniture and a television. Theft or malicious damage by guests can be restricted under some contents sections, so the wording matters.
A chimney fire. A wood burner is used by guests and a chimney fire spreads to the roof. The insurer asks when the chimney was last swept and whether this was declared.

England, Scotland and Wales do not follow the same rules

Where the property is matters as much as how you let it.

England: a mandatory national registration scheme for short-term lets is being introduced and GOV.UK says it is expected to begin in March 2027. In London, letting a home for more than 90 nights in a calendar year can need planning permission.
Scotland: short-term lets need a licence from the local council, and the mandatory licence conditions include valid buildings insurance and public liability insurance for each let.
Wales: anyone taking bookings of 31 nights or less must register with the Welsh Revenue Authority by 31 March 2027, and councils may introduce a visitor levy.

Our guide to short-term let registration and licensing sets these out. If you list on booking platforms, read insurance for short-term let hosts for how platform protection compares with your own policy. Owners running apartments as a business should see serviced accommodation insurance, and owners in the South West can see our holiday let insurance in the South West page.

How Apex helps

Apex arranges cover for holiday lets, HMOs and short lets. To quote we need the property address and type, how it is let and for how many nights a year, your turnover from letting, any claims in the last five years, and details of hot tubs, pools, outbuildings and who handles changeovers. A broker reads each enquiry and comes back with options, and there is no fee for a quote. Cover is always subject to the insurer's acceptance and the policy terms.

Sources

Frequently asked

Does my home insurance cover my holiday let?

Usually not without the insurer's agreement. Home policies commonly exclude business use or require you to tell them before you let to paying guests. If you let without telling them, a claim can be reduced or declined and the liability section may not respond to guests. Ask the insurer in writing or move to a policy written for holiday letting.

Do I need public liability insurance for a holiday let?

It is not a general legal requirement in England, but GOV.UK guidance says holiday let owners should have it, and in Scotland it is a mandatory condition of a short-term let licence. Guests who are injured can claim against you under the Occupiers' Liability Act 1957, so most owners treat it as essential.

Does holiday let insurance cover cancelled bookings?

Commonly only when the cancellation follows damage the policy covers, such as a fire or flood that makes the property unusable. Cancellations for other reasons, such as a guest changing plans, are not usually covered by the property policy. Check how the policy measures lost income and for how long it pays.

Do fire safety rules apply to a holiday let I only let occasionally?

In England, government guidance says the Regulatory Reform (Fire Safety) Order 2005 applies even if you charge someone to stay for one night, where the property is not occupied as a private dwelling. The responsible person must carry out a fire risk assessment and keep a record of it.

Is there a holiday let registration scheme in England?

Not yet in force. GOV.UK says a mandatory national registration scheme for short-term lets in England is expected to begin in March 2027. Scotland already requires a licence, and Wales requires visitor accommodation providers to register with the Welsh Revenue Authority by 31 March 2027.

Talk to a broker about this cover

Tell us what your business does, your turnover and any claims. A broker reads every enquiry and comes back with options. No fee for a quote. Or call 0117 325 0027.

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Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances, and it does not guarantee that cover will be available or on what terms.